MVM Terminates KPMG Contract

  • 6 Sep 2018 7:25 AM
  • Budapest Business Journal
MVM Terminates KPMG Contract
MVM Hungarian Electricity Zrt. terminated its contact with KPMG on May 30, just one day prior to the submission of the auditor’s report, according to a lengthy post on business news blog G7.hu last week.

The parties involved did not comment on the move, but five members of the board of directors and two members of the supervisory board of MVM have been removed from their positions and a new CEO appointed in recent weeks.

Previously, KPMG had been the auditor of MVM for seven years. Sources of G7.hu said that there was a conflict between the two firms, while online news portal index.hu reported that KPMG had issues with a HUF 4.98 billion contract that MVM entered into with its Swiss unit MVM International AG to build an IT system, instead of publishing a call for tenders in Hungary.

KPMG did not sign the annual report which included this contract. The Swiss unit operated in a small office in the most expensive part of Zurich with just one person running it.

It was established in 2016, originally with the purpose of doing business with the Arab world. However, there were no contracts signed as a result of its operation, index.hu added in its own reporting.

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Budapest Business Journal

Hungary's largest and oldest source of business and financial news in English. Since 1992 it has presented essential information on Hungarian business life, including international analyses about the country. These days the BBJ newspaper is published every other week, while it releases daily business news online including premium paid content.

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